Reliance tests CBM market

Vol 20, PW 19 (15 Jun 17) News in Brief

After nearly a decade of trying, Reliance finally began commercial gas production from its 500-sq km Sohagpur West CBM block or SP (West) CBM-2001/1 in Madhya Pradesh on March 24 this year.

Hopefully things will move faster now as Reliance prepares for a 'price discovery exercise' in line with a new government CBM policy issued in April guaranteeing pricing and marketing freedom. Reliance invited bids on June 5 from gas users by June 24 to off-take some or all of the estimated 800,000 cm/d production from the gas delivery point at Tehsil Burhar in Shahdol district.

Reliance has appointed Crisil Risk and Infrastructure Solutions to manage the bidding process for the price discovery, expected to run from July 1 to September 30, 2017. This block is connected to the national gas grid through the 312-km Shahdol to Phulpur pipeline laid by Reliance Gas Pipeline, which in turn connects to the HBJ pipeline.

Some might remember this block saw scenes of extreme violence in December 2014 when villagers attacked employees from driller South West Pinnacle.

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